Why a vanilla milkshake may cost more

Published on 3 Jun 2019 9:27:43 PM

Cyclones, drought and vanilla crop-theft in Madagascar - which produces about 80 percent of the world's most popular type of vanilla - have contributed to soaring prices by eating into supply.

For McCormick & Co, the world’s largest spice company, the scarcity of vanilla has spurred it to begin cultivating an alternative source on the north coast of Papua, Indonesia.

McCormick, which sells vanilla and its extract to retailers, restaurants and packaged food makers, said it has been passing the higher costs on to buyers.